The bank was accused of forcing borrowers to pay for insurance they did not need, pushing almost 250,000 of them into delinquency, according to a 2017 lawsuit.
Readers weigh potential risks in the leveraged loans market, debate Herb Sandler's legacy, consider the role the Fed should play in real-time payments and more.
Options include legislation to study the risk of leveraged loans, more aggressive action by the Financial Stability Oversight Council and additional capital buffers. Policymakers may also choose to do nothing.
For First Republic Bank in San Francisco, “the pain index is likely somewhere between excruciating and traumatic,” says one expert. But few realize how much the bank got for its money.
For First Republic Bank in San Francisco, “the pain index is likely somewhere between excruciating and traumatic,” says one expert. But few realize how much the bank got for its money.
After more than six years, the Fed is ending its order requiring greater risk controls at the bank, following an estimated $6 billion in trading losses in 2012 that stemmed from a single trader.
